November data highlighted a modest rebound in business conditions across the Dubai private sector, with output, new orders and employment all expanding at a faster pace than in the previous month.
As a result, the headline seasonally adjusted Emirates NBD Dubai Economy Tracker Index – a composite indicator designed to give an accurate overview of operating conditions in the non-oil private sector economy – picked up from 51.9 in October to 53.4 in November.
The latest reading was comfortably above the neutral 50.0 value, but signalled a slower pace of improvement than the average since the series began in 2010 (55.3). Stronger output growth was a key factor boosting the headline index in November.
The headline Emirates NBD Dubai Economy Tracker Index is derived from individual diffusion indices which measure changes in output, new orders, employment, suppliers’ delivery times and stocks of purchased goods.
A reading of below 50.0 indicates that the non-oil private sector economy is generally declining; above 50.0, that it is generally expanding. A reading of 50.0 signals no change.
The survey covers the Dubai non-oil private sector economy, with additional sector data published for travel & tourism, wholesale & retail and construction.
Commenting on the Emirates NBD Dubai Economy Tracker, Khatija Haque, Head of MENA Research at Emirates NBD, said, “The improvement in operating conditions in Dubai in November, as reflected in the rise in the Dubai Economy Tracker Index, is encouraging. Activity in the travel and tourism sector has improved as we head into the ‘high season’ for hospitality, and we expect this trend to continue into Q1 2016. The strong growth in output and new work in the construction sector supports our view that investment in infrastructure will continue to contribute to growth in Dubai’s economy, despite sharply lower oil prices.”